SB 1340

Existing law establishes the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development, led by the Small Business Advocate, and sets forth its powers and duties relating to advocacy on behalf of small businesses and providing small businesses with the information they need to survive in the marketplace. Existing law requires a state agency that significantly regulates small business or that significantly impacts small business to designate at least one person to serve as a small business liaison for the agency. Existing law requires these state agencies to notify the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development and the Department of General Services of specified information, including the name and contact information of the agency’s small business liaison. This bill would require the small business liaison for each state agency to annually submit specified contract information to the Office of Small Business Advocate, including, among other things, a list of all contracts of the state agency that include a subcontract with a small business. The bill would require the Office of Small Business Advocate to post that contract information on its internet website. Existing law requires the directors of state departments and other agencies that enter into contracts for the provision of goods, information technology, and services to the state, and in the construction, including alteration, demolition, repair, or improvement, of state facilities to, among other things, establish a minimum goal for procurement participation for small businesses, provide for small business preference, and give special consideration and assistance to small businesses, as specified. This bill would require a contractor awarded a state contract pursuant to these provisions to utilize the listed small business or microbusiness subcontractor identified in a bid proposal for goods and services specified in a contract described above unless otherwise approved by the awarding state agency. The bill would prohibit a contractor awarded a state contract pursuant to these provisions from substituting, replacing, or terminating a listed small business or microbusiness subcontractor without approval of the awarding state agency or department. The bill would require an awarding state department or agency, upon the completion of an awarded contract for which a commitment to achieve a small business goal was made, to require the prime contractor that entered into a subcontract with a small business to certify certain information including, among other things, that all payments under the contract have been made to the small business, and require the prime contractor, upon request by the awarding state department or agency, to provide proof of payment for the work. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. Existing law, the California Disabled Veteran Business Enterprise Program, sets disabled veteran business enterprise statewide participation goals of a minimum of 3 % of total contract value expended each year for contracts awarded by any state agency, department, officer, or other state governmental entity, as specified. This bill would require a contractor awarded a state contract pursuant to the program to utilize the listed disabled veteran business enterprise subcontractor identified in a bid proposal for goods and services specified in the contract unless otherwise approved by the awarding state agency. The bill would prohibit a contractor awarded a state contract pursuant to the program from substituting, replacing, or terminating a listed disabled veteran business enterprise subcontractor without approval of the awarding state agency or department. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.